ILSA DEMARCHE TO TURKEY

UNCLAS ANKARA 001988

SIPDIS


SENSITIVE


STATE ALSO FOR EB/CBED, EUR/SE, NEA/NGA AND EB/ESC
NSC FOR BRYZA AND MCKIBBEN


E.O. 12958: N/A
TAGS: ETTC ENRG AU TU IR
SUBJECT: ILSA DEMARCHE TO TURKEY

REF: STATE 68432



1. (SBU) A/DCM presented reftel points April 5 to MFA Deputy
Director General for Energy Hakki Akil, pointing out that
development of a pipeline to carry Iranian natural gas to
Europe via Turkey would raise serious issues related to both
U.S. law (ILSA) and U.S. policy. Per reftel, A/DCM stressed
that pursuit of such a project could raise questions about
U.S. support for Turkish gas exports to Europe.



2. (SBU) Akil emphasized Turkey's long-standing policy of
working closely with the USG to to build an East-West energy
corridor and to make Turkey an energy hub, and said his
government was committed to continuing that policy. He said
there was no intention to build a specific pipeline to carry
Iranian gas to Europe; the Nabucco project ends at Turkey's
border with Bulgaria (i.e., does not continue through Turkey
to Iran). In fact, the GOT is working hard to promote
alternative sources of gas to Europe, including not only
Azeri gas but also Turkmenistan gas via the Shah Deniz
pipeline.



3. (SBU) The problem, per Akil, is that -- if European
customers in the end decide to buy Iranian gas -- it will be
politically difficult for Turkish authorities to refuse to
let the gas transit their country. The solution, he
reiterated, is to encourage alternative suppliers so that the
Iranians are squeezed out of the picture. To this end, he
has been urging Statoil, SOCAR, and BP, as well as the
Egyptians and Iraqis, to study the European gas market and
try to market their gas in that market.
EDELMAN